Advertising plan book : Melon

1. New Media Advertising
Plan book :Melon
이은주 · 권지현 · 최예림 · 이경진 · 최지영 · 홍서정

2. Index
I.
Situation Analysis
1. Introduction of Melon
2. Market information
3. Marketing Research
II. The Solution: Digital Touch Point Design
1. Social media
2. Mobile media
3. OOH media
4. Emerging Digital media
III. Conclusion

3. I. Situation Analysis
1. Introduction of Melon
Melon is No.1 on-line music sales service in Korea.
Loen entertainment have been managed ‘Melon’ since 2009.
They offer ubiquitous music platform through various devices like PC, mobile, or smart TV.
Through Melon, consumers can see various music charts easily.
(For example, total music chart, real-time chart, genre chart)
Also ,Melon holds an annual celebration which called “Melon awards”.
It has become the one of the biggest music festivals in Korea.
Now, melon is leading trend in Korean On-line music market.

4. I. Situation Analysis
2. Market information of Music industry
The center of music industry is moving from „Off-line‟ to „On-line music market‟.
The growth of On-line music market seems to be continued in the future.
Global Recorded Music Market Prospect(2011)
Digital music industry
(Source: PwC)
-Now, domestic smart phone user recorded 30 million.
And this phenomenon leads growth of „On-line music market‟.
-Last year, the size of domestic music market was 8 hundreds and 50 million dollar
and it registers 10.2 growth rate as the yearly mean.
-„Korean On-line music market‟ seems to be extended consistently
and it is expected to reach 14 hundreds dollars in 2016.
-Music applications like „Melon‟, „Bugs‟ , „Naver music‟ have steadily increased profit.
On investigation, the number of people who enjoy music on mobile was double than people
who enjoy music through cable web.

5. I. Situation Analysis
2. Market information-Market share
▪ Korean Online Music Service
Market Share(2012)
Melon
(Source: shinhan investment stock)
-Melon‟s domination is remarkable in domestic online music service market.
-Melon‟s market share recorded 59%
it made a big gap comparing with „M-net‟ that holds second share in music service market.
-It seems that „Melon‟ keeps its position as strong site of music service market up to now.
-Melon‟s influence is expected to get higher in all area of a sound source sale, circulation , and
production.
-Many other music service companies are growing also.
„KT‟ is on the process of enhancing its music business and NAVER music‟s share have increased
continually.

6. I. Situation Analysis
2. Market information-Competitor Analysis
2.Bug’s
1. Mnet
-„MNET music‟ holds the second rank in
on-line music market so it is strong rival.
-‟Bugs‟ was a illegal free music download site.
However, they changed service to high quality charging
streaming site.
-It provides „HD music 2.0‟ that offer high-definition
picture and original studio sound for differentiation.
Furthermore, „HD music 2.0‟ provide Mnet‟s
all program for free.
-In 2013, Bugs recorded the third best music site.
It brings out only for smart phone,
since bugs user‟s 75% use smart phone for listening music.
-MNET music hold „Mnet Asian Music Awards‟.
It lasted over 10 years, and it successes annually.
So this festival introduces MNET music brand
to global people.
Furthermore, „Bugs‟ schedules to start new service
„kakao music‟ using kakao talk.
„Kakao music‟ is music service that combines social + music.
User can listen to music with friend through „Music look‟.
-Therefore, Bugs would get the powerful platform
by cooperating with Korean first mobile messenger
Kakao talk and Kakao story.
MAMA
HD music 2.0
kakao music

7. I. Situation Analysis
2. Market information-Target Analysis
▪User gender/age distribution on Melon
▪User age distribution on Smartphone
in South Korea
Melon‟s main target is 1020‟s, youth generation.
This generation‟s characteristic is that they are trend leader.
So melon is focusing on their trendy life style.
Also, „User age distribution on smart phone in South Korea‟ indicates that many of 10-20‟s have smart phones. Tho
se young people who use smart phones are the leader of digital music industry. Therefore, melon needs to increas
e mobile promotion for 1020‟s.

8. I. Situation Analysis
3. Marketing Research-Current marketing strategy
•Marketing Goal
The goal of Melon‟s marketing communication is to inform
their ubiquitous music streaming service, which enables users
to play music anytime and anywhere.
•Key Message
Melon‟s key message is “My Music, My Life”
This means that Melon adds music to your daily life.
That is, the ordinary daily life becomes a music video with Melon.

9. I. Situation Analysis
3. Marketing Research-Current marketing strategy
•Marketing Strategy -ATL
Melon launched new TVCF-”My Music, My Life”.
Melon TVCF – ‘Sung Jun’ ver. 30s
Melon TVCF – ‘Go Ah Sung’ ver. 30s
These 2 versions of TVCF include each person‟s day of life.
It shows several aspects of young generation‟s trendy lifestyle with Melon music.

10. I. Situation Analysis
3. Marketing Research-Current marketing strategy
•Marketing Strategy -BTL
Melon is now running an SNS event to enhance new TVCF.
• People can enter for an event by spreading Melon‟s TV
CF and making film by using facebook and twitter.
If they spread this event widely, they would have more
chance to get Melon party ticket.
•The advantage of this event is that marketers can use
paid/owned/earned media (TVCF/Website/SNS) at the same time.
However, the participation rate is low,
since the event is fail to interest people.
(Source: Melon website)

11. II. The Solution: Digital Touch Point Design
1. Social Media
-Touch point:
-Key characteristics: 1)New platform for finding music people want.
2)High accessibility because its method is SNS(Facebook)
- Rationale: Facebook is powerful SNS for our core targets.
This new platform using Facebook hashtag can be good method for customer acquisition.
-Advertising strategy
1) First develop new platform of hashtag „#M: location‟.(M is short for Melon.)
2) Users can upload their music which they want to recommend on SNS with hashtag.
3) Let people recognize that when they want to get recommendation of music, they just input #M: location(where they are now
located) to Facebook search bar.
-How it works
Facebook user A listens music in daily life. A is doing exercise in health club. At the same time, he is listening music with melon.
He can upload his music on his timeline and he adds hashtag like '#M: health club'. When other users input '#M: health club‟ to
search bar, he can find music which is uploaded by user A.
-Effect
When people are doing something in daily life with music, anywhere can be good location for listening
music. People will recognize that if they want to find music related to their location in daily life, they just
put „M#: anywhere‟ in search bar. Anywhere can be part of music video. Of course, this can be possible
with melon. So the final is: when people want to listen music, they finds melon in daily life

12. II. The Solution: Digital Touch Point Design
2.Mobile Media-(1)
LBS+Mobile Audio Advertising
-Touch point : ibeacons
-key characteristics : Hyper-local locating system which can broadcast diverse contents
to all compatible devices in range.
-Rationale: This strategy is designed to increase awareness of current advertising campaign.
Location based marketing is needed to deliver personalized experience of “My Music, My Life”.
-Advertising strategy:
1 Cooperate with local stores and install ibeacons offered by melon. (café, shopping mall, health club..etc.)
2 Stream situation-based music recommended by SNS fans.
3 Insert audio advertising between the streaming-”My Music, My Life”, “A moment of music, Melon”
4 Give “1-month free coupon” for 100th customer who use streaming service by ibeacons.
-Effect:
1.Let people know the current advertising campaign by inserting audio advertising.
2. Notify our advertising concept indirectly by providing location based music streaming service.
3.Draw new customers by offering free streaming service.

13. II. The Solution: Digital Touch Point Design
2. Mobile Media-(2)
Brand application + Audio activation
-Touch point : Mobile devices(Smartphone, Tablets..)
-key characteristics : 1. Time and location flexibility
(always on – less time and spatial restriction / personal and intimate nature – targeting possibility)
-> People can find music anytime.
2. It can reflect unique user experience
-Rationale: This strategy is designed to increase awareness of current advertising campaign.
this application will make people feel closely connected with music.
-Advertising strategy:
1. Develop an application likes Shazam.
(when people activate this application, they can find what this music is through application.)
2. While people wait to find the music, they can watch melon CF.
3. After people find music through application, they can buy the music in discounted price.
(if they buy the music directly.)
-Effect:
1. Let people know the current advertising campaign by inserting video advertising when people wait.
2. Notify our advertising concept indirectly by providing music search service anytime.
3. Increasing melon users by offering discount coupons

14. II. The Solution: Digital Touch Point Design
3.OOH Media
-Touch point : Digital Signage
-key characteristics :
1. Through Media Pole that advertising delivery medium, people exposure brand 'Melon'.
2. Through game with ringing bell and media pole, people can participate actively Melon's advertising campaign.
3. Campaign combined OOH, Mobile and SNS can permeate person's daily life.
-Rationale:
This campaign has goal that in daily life through game, people encounter Melon's advertising and appreciate.
It can be appreciated more effectively because this combines digital signage, mobile and SNS.
-Advertising strategy:
1. Makes a new rhythm game like 'Tapsonic' that beats time of music.
2. Distribute game tools centrally ibeacon cooperating store. (Ringing bell in cafe, Media pole in other places)
3. Through Melon SNS, we can play game with shared music.
4. In game, writing is inserted-'일상에 음악을 더하다'.
5. When person acquires certain score, he can get that music.
6. People can decide grade with his friends, they can share score in SNS..
-Effect:
1. People, in street or cafe (for waiting coffee), can exposed Melon's advertising campaign with OOH.
2. Through game service, people can participate Melon's advertising campaign in daily life without repulsion.
3. Because this advertising campaign compensates music, people participate actively it, so it increases ripple effect..

15. II. The Solution: Digital Touch Point Design
4. Emerging Digital Media (1)
Location AR-AR browsers
-Touch point: smart phones, Tablets and Wearable devices
-Key Characteristic: Shows the location of store that may not be
within direct line of sight
-Rationale: The cooperated stores need to be informed to the people.
-Advertising strategy: People can see the store where the melon streaming service is available when they find location
by AR browsers(ex. Layer, wikitude.etc). For example, if someone search “cafe” by AR browser, the melon sign will be
showed up together with the information of nearby cafe.
-Effect: This simple tactic will enhance our previous strategy by informing the location of the cooperated stores.

16. II. The Solution: Digital Touch Point Design
4. Emerging Digital Media (2)
Outline AR -TAT augmented ID
-Touch point: smart phones, Tablets and Wearable devices
-Key Characteristic: People can add a digital layer to the
real world to represent themselves.
-Rationale: This strategy is designed to offer ubiquitous music streaming environment through augmented ID .
-Advertising strategy: Consumers can add a Melon application on their public profile and share their music with
others. They can show their playlist or recommended music to the friends. The songs will be offered for free to the
charged members.
-Effect:
1. Consumers will be experience new type of music service sharing their own music with friends.
2. Adding melon app on their public profile enhance “My Music, My Life” indirectly.

17. III. Conclusion